B.S. Chauhan JUDGMENT
G.S. Singhvi, J.
1. Leave granted.
2. Whether the appellants in these appeals except the appeal arising out of SLP (C) No. 14133/2006 are entitled to allotment of residential plots in Phases VIII-A and VIII-B, Mohali, Punjab developed by the Punjab Small Industries and Export Corporation Ltd. (for short, 'the Corporation') and whether the State Government's refusal to sanction change of land use from industrial to residential is vitiated by arbitrariness and malafides are the questions which arise for determination in these appeals filed against orders dated 23.9.2005 and 28.7.2006 passed by the Division Bench of the Punjab and Haryana High Court.
3. The Corporation is a government company within the meaning of Section 617 of the Companies Act, 1956. It was created for developing infrastructure necessary for industrialization of the identified areas of the State. Between 1994 and 1996, the State Government acquired land in Phases VIII-A and VIII-B, Mohali and handed over the same to the Corporation. After carrying out necessary development, the Corporation allotted the plots to industrial entrepreneurs. As there was no provision in the extant industrial policy for earmarking some land in the focal points/growth centres developed by the Corporation, which could be allotted to the industrial entrepreneurs and the workers employed in the industries, the Corporation submitted a proposal to the State Government to allow it to earmark 20-30% area in the existing/coming up focal points/growth centres for Industrial Housing. After due deliberations, the State Government approved the proposal. This was conveyed to the Corporation vide Memo No. 1/2001-61B/5329 dated 26.12.2001, paragraph 2 whereof reads as under:
Government agrees to your proposal to earmark 20-30% area for Industrial Housing as matter of policy in the existing/coming up focal points and growth centres developed by PSIEC, depending upon circumstances of each area for facilitating speedy growth especially in industrial backward area.
4. Although, the above mentioned decision of the State Government did not provide for change of land use from industrial to residential, the Corporation, on its own, framed a policy for disposal of residential plots in the existing and up-coming industrial focal points/industrial estates/growth centres. The relevant portions of that policy are extracted below:
1. PROCEDURE FOR INVITING APPLICATIONS:
Application for allotment of plots of free hold ........